If you’re enrolled in Medicare, you may have heard the term IRMAA, which stands for Income-Related Monthly Adjustment Amount. It’s an extra charge that some Medicare beneficiaries pay in addition to their standard Part B (medical insurance) and Part D (prescription drug) premiums.
Put simply, IRMAA is a surcharge based on your income. It’s designed to have higher-income retirees contribute a bit more toward the cost of their Medicare coverage.
How IRMAA Is Calculated
Each year, the Social Security Administration (SSA) looks at your Modified Adjusted Gross Income (MAGI) from two years prior to decide whether IRMAA applies.
For example, your 2025 income will determine your 2027 Medicare premiums.
If your income is above a certain threshold, you’ll pay higher monthly premiums for both Parts B and D. These higher costs are called IRMAA surcharges.
IRMAA Income Thresholds – 2025 premiums based on 2023 MAGI
- Individuals: IRMAA begins when MAGI exceeds $106,000
- Married couples filing jointly: IRMAA begins when MAGI exceeds $212,000
The more your income exceeds these thresholds, the higher your monthly Medicare premiums will be. IRMAA is divided into several income tiers, and each tier increases your Part B and D costs by a set amount.
What Counts Toward MAGI
Your Modified Adjusted Gross Income includes most types of income, such as:
- Wages and self-employment income
- Pension and annuity payments
- Required Minimum Distributions (RMDs) from retirement accounts
- Interest and dividends
- Capital gains from investments or real estate sales
- Tax-exempt interest (like from municipal bonds)
Essentially, any taxable or reportable income can influence whether you owe IRMAA.
Why IRMAA Matters
Many retirees are surprised when their Medicare premiums increase — sometimes by hundreds of dollars per month — because of income reported two years earlier. Even a one-time event such as selling a property, taking a large IRA withdrawal, or realizing investment gains can temporarily raise premiums for the following year.
If your income later decreases due to retirement, job loss, or another qualifying life event, you can ask the Social Security Administration to reconsider your IRMAA determination by filing Form SSA-44.
The Bottom Line
IRMAA isn’t a penalty — it’s an income-based adjustment tax that helps fund Medicare. But knowing how it works can help you understand your healthcare costs and anticipate potential changes in your premiums.
Staying aware of how income decisions today affect future Medicare costs is one more way to stay informed and confident in your retirement planning.
If you have any questions on how IRMAA may affect you, give us a call!
Golf Tip of the Week
Equip Smart to Stay Strong
As we age, the distance we hit the ball often drops—but it doesn’t have to be a lost cause. According to an article in Golf Digest, making equipment updates can help recapture lost yardage and better match your current swing dynamics.
In plain terms:
- If you’re still using heavy steel-shafted irons or a driver built for maximum speed, consider switching to lighter shafts (steel or graphite) and clubs designed for easier launch and more forgiveness.
- Senior golfers often lose rotational power or range of motion. The right equipment helps compensate by maximizing what you still have—efficient force transfer, good strike, and optimized launch.
- A proper fitting becomes even more important as your body changes: reduce fatigue, improve consistency, and tailor your gear to your current rhythm instead of chasing your younger self.
How to use this on the course this week:
- Book a fitting session or at least test a few clubs with lighter shafts and more forgiving heads.
- On your next round, note how your clubs feel: are you swinging easier? Are the shots still going “up and forward” rather than “down and out”?
- During warm-up, focus on smooth tempo rather than raw power—if the club feels lighter and you’re making more controlled, fuller swings, you’re on the right track.
By letting your clubs fit you (rather than forcing you to fit the clubs), you’ll set yourself up for better contact, higher launch, and more playable distance—designed for your game today.
Golf tip adapted from Golf Digest. Read the full article here: The Equipment Steps You Can Take to Get Back Age-Related Distance Loss
Recipe Tip of the Week
Classic Thanksgiving Stuffing
Ingredients:
- 12 cups dried bread cubes (about day-old bread)
- ⅔ cup (or a bit more) butter
- 2 small yellow onions, diced
- 4 ribs celery, diced
- 1½ to 2 cups chicken broth (or turkey/vegetable broth)
- 1½ tsp poultry seasoning (or ½ tsp ground sage)
- Salt and pepper to taste
- 2 Tbsp chopped fresh parsley (or 2 tsp dried)
Instructions:
- Preheat your oven to 350°F.
- Melt the butter in a large skillet over medium heat. Add the diced onions and celery; sauté until softened.
- Place the bread cubes in a large mixing bowl. Add the sautéed onion-celery mixture and toss to combine.
- Pour in broth gradually, stirring, until the mixture feels moist but not soggy. Season with poultry seasoning (or sage), parsley, salt and pepper.
- Transfer the mixture into a greased baking dish. Bake uncovered in the oven for about 45–55 minutes (or until the top is golden and the centre is set).
- Serve hot alongside your turkey and other Thanksgiving sides.
Recipe adapted from Averie Cooks. Read the full article here: Classic Traditional Thanksgiving Stuffing
Travel Tip of the Week
Choose a “warm swap” destination to beat the cold-weather rush
When winter sets in, many travelers buckle down for the usual ski slopes or snowy escapes. Instead, consider opting for a warm-weather destination during the winter months—think sun, sand and an escape from the freeze. According to Travel + Leisure, heading to a beach or tropical locale not only offers a contrast to the routine colder climates, but often means fewer crowds, off-peak rates and a more relaxed rhythm.
Why this works:
- You avoid winter-weather hassles such as icy roads, slow airport systems or heavily bundled layers.
- Popular winter-sun spots may still have cooler weather in the high season—but in the shoulder season you’ll often get better value.
- You’ll get a mental reset by actually travelling away from the “every-winter-routine” mindset.
How to apply it:
- Pick a destination with reliable moderate/warm temperatures (e.g., Caribbean, southern U.S., Canary Islands).
- Compare pricing for “winter-sun” vs “winter-snow” destinations: you might be surprised how the sun-seekers’ spots can cost less once the ski-season premium kicks in elsewhere.
- Pack accordingly: lighter layers, breathable fabrics, sun protection—even in “winter” trips.
Travel tip adapted from Travel + Leisure. Read the full article here: 15 Best Warm Places to Travel in Winter
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